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Coal India Ltd may exit International Coal Ventures Ltd (ICVL) over a ‘conflict of interest'.
The much-talked about ICVL, formed as a joint venture by five cash-rich public sector companies to acquire overseas coal assets, is turning out to be ‘no-one's baby'.
Earlier, NTPC had also put up its application with the Power Ministry to allow it to exit ICVL. “There is no clarity on the agenda and no one wants to take a risk.
“On one hand, companies like NTPC and Coal India want thermal coal, while others want to buy coking coal assets,” said a senior Coal Ministry official. “It has turned out to be no-one's baby,” the official added.
When contacted, the Coal India Chairman, Mr S. Narsingh Rao, said the company board would take a decision on the issue ‘soon'.
The public sector miner will have to seek its nodal Coal Ministry's permission to finally exit the venture.
In 2009, five companies — SAIL, Coal India, RINL, NMDC and NTPC — formed ICVL. Its board, currently headed by Mr C.S. Verma, Chairman of SAIL, is empowered to make investments up to Rs 1,500 crore. However, the joint venture failed to make any significant progress till now.
According to unconfirmed reports, ICVL discussed acquiring Washpool's hard coking coal project with Aquila Resources Limited.
The Steel Ministry had proposed to make ICVL a subsidiary of steel-maker SAIL. This would have been on the lines of ONGC's overseas subsidiary, ONGC Videsh Ltd.
“No decision has been taken with regard to this proposal. Maybe after the exit of NTPC and Coal India, it is going to happen,” the Coal Ministry official said.
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